Bonds Up, Dow Up, JPY Up, Gold Up, Oil Up; Earnings Down, Macro Down

Tyler Durden's picture

For the fifth week in a row, US Macro data deteriorated markedly (not helped at all by today's GDP miss). The Q1 earnings picture is dismal, with beats far less than average and revenues hugely disappointing. But, in light of all that reality, where-ever you look, screens are green. Despite some softness today (oil, S&P, and Nasdaq down) the week showed impressive gains for equities amid the lowest volume week in three months (mostly driven by the epic short squeeze on Tuesday), modest gains for Treasuries (yields lower by 2-4bps), significant outperformance by precious metals (up over 3-4% on the week - having given some back in a post-Europe smackdown today), and WTI crude up over 5% on the week.  Perhaps the most notable fact about the week (apart from equity's inexorable bid in the face of nothing positive at all) was the surge in JPY. In an Abenomics-shattering print, last night's deflation data helped USDJPY rally its most in 11 months for the week. While all asunder will be celebrating another green week, it is perhaps worth noting that while the Russell gained 1.3% from Monday's close, the 'most-shorted' names of that index more than tripled that performance - gaining 4.4% on the week... squeeeeze.

 

The epic short squeeze that was this week...

Though it seems like the main squeeze was mid week and today saw shorts trading in line - which explains the 'market' need to sell every rally above VWAP (amid a dismally low volume week in the futures)...

 

With USDJPY having its biggest rally in 11 months!

 

Stocks gained still (despite JPY carry weakness)

 

But bonds were well bid...

 

The USD ended the week modestly lower even though EUR weakened against it. Driven by JPY strength and a huge surge in GBP after it avoided a triple dip (for now)...

 

and commodities all surged on the week - despite the slam down at the end of the European session today...

 

Still a believer... this week was the lowest volume month for eMini futures volume in 3 months...

 

Charts: Bloomberg and Capital Context